Management model of dominant organization at the transport market

Abstract

Introduction: The dominant organization is the one that due to the scale of its activities and influence has exceptional resistance to impact on consumers of transport services and on competitors. Objective: The study of management model of a transport market organization that has high competitive competencies. Results: The dominant organization in relation to the industrial enterprise is determined to gain the monopoly rent having the limited motivation to maximize the transaction benefits for the counterparty (industrial enterprises). Excess power enables the dominant organization to "force" the company to pay the extra cost for the organization to obtain additional income. The negative consequences of the dominant organization’s monopoly power is also distortion of price structures, creation of artificial constraints as to the market entering, substitution of real investment with investment in preserving the emergency state at the market. Management and coordination mechanism currently in force in transport service and transport industry is still inferior by its effectiveness even to the management mechanism that acted under socialism, despite the fact that there is already significant work experience in the market economy. Conclusions: The main directions of enterprise transformation in the market economy are as follows: recovery of integrity in the management of transport enterprises and transport industry, restriction of private economic power of individual organizations and the rental income generated by them, elimination of artificial restrictions as to the market entering; restructuring enterprise ownership to give it greater openness and transparency.